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Pakistan Agriculture Developments

Agri sector surpasses target, grows 4.4pc; big industry up 10.4pc

Amin Ahmed | Kalbe Ali Published June 10, 2022 - Updated about 12 hours ago




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ISLAMABAD: The country’s agriculture sector recorded a remarkable growth of 4.4 per cent during the outgoing fiscal year, surpassing the target of 3.5pc and last year’s growth of 3.48pc, while during July-March 2021-22, large-scale manufacturing (LSM) also recorded a staggering growth of 10.4pc against 4.24pc in the corresponding period last year, according to the Pakistan Economic Survey released on Thursday.
Growth in the agri sector, the document says, was mainly driven by high yields, attractive output prices and supportive government policies, better availability of certified seeds, pesticides and agricultural credit.
The five important crops contributed 19.44pc to value addition of the sector and 4.41pc to the gross domestic product (GDP), while other crops accounted for 13.86pc in value addition and 3.14pc GDP.
WHEAT: The grain production declined during the outgoing fiscal year by 3.9pc to 26.394 million tonnes, compared to 27.464MT last year. This was due to a reduction in the cultivated area, shortfall in irrigation water and drought conditions at sowing, less fertiliser offtake and the heatwave in March and April, though the government-increased minimum support price was aligned to the cost of production.
The survey emphasised that the potential of the agri sector needed to be exploited to boost economic growth, job creation and encourage exports.
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COTTON: The cultivated area declined by 6.8pc, however production increased by 17pc to 8.329 million bales against last year’s 7.064m. This improvement was attributed to conducive weather conditions, smooth input, better crop management and favourable prices in the international and domestic markets.
RICE: For the last couple of years, the area cultivated was rising, and during 2021-22 a record high output of rice stood at 9.323MT, higher by 10.7pc than last year’s 8.420MT. The area sown showed an increase of 6.1pc.
SUGARCANE: This crop recorded bumper production of 88.651MT, up by 9.4pc over last year’s 81.009MT. Higher domestic sugar price and better cane procurement rates incentivised growers to dedicate more area to the crop, besides favourable weather conditions, better management and timely availability of quality inputs.
MAIZE: The crop output was recorded at 10.635MT in 2021-22, witnessing a significant growth of 19pc over 8.94MT last year. Maize contributes 3.2pc value addition to agriculture and 0.7pc to GDP.
OTHER CROPS: During the outgoing fiscal year, the production of chilli, potato and moong daal increased by 36.6pc, 35.1pc and 29pc, respectively. However, that of daal maash and onion declined by 11.6pc and 8.5pc, respectively.
OILSEEDS: During the first 10 months of 2021-22, 2.754MT of edible oil/oil from oilseed for crushing worth Rs662.657 billion was imported. Local production of edible oil during this period was provisionally estimated at 0.460MT and its total availability at 3.214MT.
LIVESTOCK/POULTRY: The survey estimated that the livestock population increased during 2021-22 — cattle population 53.4m as compared to 51.5m last year; buffalo 43.7m; sheep 31.9m; and goat 82.5m.
Moreover, with an investment of Rs750bn, the poultry industry was growing at an impressive rate of about 7.5pc per annum over the last decade, making Pakistan the 11th largest poultry producer of the world.
Industry estimates
While LSM grew by 10.4pc, Pakistan now faced the daunting tasks of controlling stimulus-induced fiscal deficit, curtailing the widening current account deficit, managing pressure on the exchange rate along with achieving a sustainable post-pandemic recovery.
Manufacturing dominated the industrial sector with a share of 12.4pc in the GDP. It is categorised as LSM, small-scale manufacturing and slaughtering. The expansion of LSM appeared broad-based, as 17 of its 22 sectors witnessed a positive growth, including furniture, wood products, automobiles, footballs, tobacco, iron and steel products, machinery and equipment, and chemical products.
Coke and petroleum products marginally grew by 2pc from July-March against 12.3pc last year.
The high global energy prices depressed the overall growth momentum, however, after a pick-up in economic activities, especially automobile, and an increase in transportation, oil sales also showed an increase of 14.9pc during July-March 2021-22.
The textile sector weighed the highest in the LSM, growing by 3.2pc during the July-March period, as compared to 8pc over the same period last year. Production of yarn and cloth showed a marginal growth of 0.7pc and 0.3pc, respectively. Congruent production units, invariant capacity and elevated cotton prices owing to the disruption in demand-and-supply gap moderated the growth momentum of the cotton sector.
However, a surge in textile machinery imports, rising demand for concessionary financing from textile firms and high exports of this sector showed a sizable improvement in this field. The export of garments grew 33.9pc.
Moreover, the food group with the second highest share in LSM witnessed a growth of 11.7pc, with the bumper cane crop and better international prices pushing up sugar production. The production of cooking oil increased by 10.8pc, while that of vegetable ghee slid by 2.5pc due to high palm oil and soybean prices in international markets along with a depreciating rupee.
Published in Dawn, June 10th, 2022

 
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Punjab proposes Rs19.53bn for agriculture, irrigation, livestock

Zahid Baig
15 Jun, 2022

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LAHORE: The Punjab government has proposed a sum of Rs19.53 billion as the Annual Development Programme (ADP) collectively for the agriculture, irrigation and livestock sectors for the year 2022-23.

The allocation of the development budget for agriculture according to the budget documents stands at over Rs14 billion and a sum of Rs3.65 billion out of it will be spent on ‘Punjab Resilient and Inclusive Agriculture Transformation (PRIAT). Under this project the government aimed at bringing in latest international technology to transform the agricultural sector on modern lines.

The government also intends to introduce eight new programmes under the research & development head to make possible increase in per acre yield of different lentils, peanut, blackberry and other high valued crops. It is hoped that it would increase prosperity in the rural folk.

According to the documents, the government also intends to promote incentive based crop zoning under which zoning of land of Punjab province will be carried out according to the potential of the lands and incentives and facilities will be provided to farmers of these areas according to it.

The government has proposed an allocation of Rs1 billion for rehabilitation of old bulldozers, Rs0.42 billion for godowns of food for testing facilities and Rs1 billion for the national programme for improvement of watercourses in Pakistan.

For livestock sector, the government has allocated a sum of Rs4.29 billion for the year 2022-23 to carry out various development schemes such as setting up of a sub-campus of the University of Veterinary and Animal Sciences.
 
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‘Food Safety and Quality of Rice Conference & Workshop’

Recorder Report
18 Jun, 2022
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KARACHI: The experts have termed the food safety and security a global issue with public health and international trade implications.

While addressing a Food Safety and Quality of Rice Conference & Workshop, the experts and scientists talked about various issues related to food safety and rice quality and said that developed countries have framed policies and regulations to ensure the food safety to the end users. Whereas, the developing nations are in the phase of transformation which is due to the emerging regulatory controls that face challenges of infrastructure, competency, legislation and management to address the issues efficiently, they added.

Speakers said that the threats to the public health and exports have compounded over time despite the fact that agriculture is the main underpinning pillar of economy of a developing country like Pakistan.

They said that the agro-commodities like rice which is the second most significant export crop in Pakistan also being suffering from excessive levels of contaminants mainly aflatoxins and pesticide residues. As a result of violation of international standards for maintaining food safety concerns consignments of rice of Pakistan have been confiscated that has also been noticed in current year from EU, they added.

Rice is a staple food for almost half of the world’s population. Pakistan is amongst top five rice exporters and brings an average of 1.9 billion USD foreign exchange by exporting 4 million tons of rice every year. Unfortunately, Pakistan could not increase its share beyond 10 percent of the total world exports of rice.

They said that Pakistan carries a huge potential as it produces both aromatic and non-aromatic rice varieties with sufficient quantities to serve the local as well as international markets. Besides other factors, the difficulties in meeting requirements of international standards for maintaining food safety concerns are one of the major causes of stagnant rice exports.
Copyright Business Recorder, 2022
 
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Engro Fertilizers has increased the price of Di-Ammonium phosphate (DAP) urea, confirmed an official privy to the matter, as rupee depreciation and rising cost of production takes a toll on the economy.

The development was also shared by JS Global Research that stated Engro Fertilizers Ltd (EFERT) has increased DAP prices by Rs1,700 per bag.

"EFERT's DAP retail price now stands at Rs12,100 per bag, which is Rs700 more expensive than the price of Fauji Fertilizer Company's DAP urea,” stated JS Global Research Analyst Waqas Ghani.

However, the analyst said others would also follow with a price-hike owing to rupee depreciation. "Fertiliser companies import DAP and whenever rupee depreciates, as it has, and DAP’s international price goes up, companies tend to jack up its rate in the country."

The rupee closed at a record low of 208.75 against the US dollar on Friday with a 3.1% fall during the outgoing week.

Meanwhile, Ghani said prices of steel rebar have also increased by another Rs5,000 per ton.

“According to our channel checks, steel rebar prices have increased by Rs5,000 per ton with effect from June 18, 2022,” said Ghani. “Current retail prices now stand in the range of Rs 232,000-234,000 per ton.”

With the latest hike, steel prices have jumped Rs20,000 just this month. According to Ghani, steel manufacturers increased steel prices on June 6 by Rs8,000 and by Rs7,000 on June 13.

He said international steel scrap prices have gone down, but companies have passed on the impact of rupee depreciation.

Association of Builders and Developers (ABAD) said, however, that the increase is due to the regulatory duty imposed on import of steel bars, which has given undue protection to local manufacturers.
 
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Italy promotes olive culture with €1.5m project​


Sees potential in Pakistan to improve olive production, make exports

APP
June 20, 2022

photo afp

PHOTO: AFP


ISLAMABAD:
Ambassador of Italy to Pakistan Andreas Ferrarese on Sunday said that Italy was playing a vital role in promoting “olive culture” in Pakistan for improving the olive value chain.

Talking to APP, the ambassador said Pakistan had all the potential to cultivate olive and Italy would cooperate with the South Asian nation with an assistance of €1.5 million.

He elaborated that the olive culture meant the supply value chain and processing, without which development in the sector would not be easy. Replying to a question, the envoy revealed that the “olive culture” project worth €1.5 million would be executed over a period of 26 months in suitable areas by Ciheam Bari International in cooperation with the Ministry of National Food Security and Research through the Pakistan Oilseed Department.

“It represents the continuation of all work done by Italy in the past, with a holistic approach encompassing all stages and stakeholders,” he said.

The ambassador was of the view that Pakistan had a lot of potential for olive production and it could earn foreign exchange by increasing the olive output and using it for commercial purposes.


Calling the quality of Italian olive the best in the world, he suggested that Pakistan could import olive from Italy. Olives are an integral part of the entire Mediterranean civilisation without which life and culture will be incomplete.

The envoy stressed that Italy had always supported Pakistan’s journey in the field and “we are happy to continue with the aim of developing a sustainable, modern and rich olive culture.”

He said it would not only provide quality edible oil for the people in Pakistan but would also help reduce the import bill. Rather, “we look forward to the times when Pakistan would be among the leading olive producing and exporting countries in the world”.

Talking to APP, Ciheam Bari International Olive Culture Project Coordinator Marco Marchetti said that there was a need to work more on the olive supply chain in Pakistan, as the lack of which could not reap the benefits.

He pointed out that the consumption of edible oil in Pakistan was 4.5 million tons, for which the market needed to introduce the best olive oil for human health.

Marchetti underscored the need for introducing technology, including creating awareness among farmers, for the promotion of olive oil culture. “There is a need to reduce the cost of production in the olive supply value chain with the acquisition of technology and to give opportunities to the local farmers to sell olive in the market at a good price,” he said.
“Olive culture has been around for thousands of years in Italy, where we have been associated with the Mediterranean civilisation and where olives have been cultivated for thousands of years.” Marchetti called on the organisations and institutions related to the local agriculture to pay special attention to the promotion of olives.

Qualified human resources, technical assistance, quality and safety standards, reference laboratories for oil certification and phytosanitary labs are very much needed in Pakistan to establish a full value chain of safe and highly nutritious tasty food that improves health dramatically. He emphasised that olive contributed to mitigating the impact of climate change as a smart tree against soil erosion and water consumption, inducing a low carbon footprint.

“These are added value benefits in Pakistan, which has the potential to be a world leader in olive production,” he said. The Italian technical assistance for Pakistan started 40 years ago with the adaptive research schemes to assess the viability of modernised cultivation of the crop (in the 1980s and 1990s).

It was followed by the launch of first significant olive crop investment (2012-15) through the Pakistan Italian Debt Swap Agreement, resulting in 2,000 hectares of plantation in the marginal and wastelands. In 2016, the olive cultivation was introduced in the Programme for Poverty Reduction, sponsored by the Italian government and executed by the Pakistan Poverty Alleviation Fund (PPAF), through which three oil extraction units were being established on a public-private partnership basis with the farming communities.

Recently, in March 2022, a key project called “Olive Culture Holistic and Multi-Professional Mechanism for Pakistani Olive Oil Value Chain” has been launched.

Published in The Express Tribune, June 20th, 2022.
 

By Wang Xiaotong | China Economic Net Jun 22, 2022



LANZHOU, June 22 (China Economic Net) - Gansu is to transfer modern Chinese agricultural science and technology particularly applicable to arid and semi-arid regions to Pakistan, revealed at the memorandum of understanding (MoU) signing ceremony between Gansu Academy of Agricultural Sciences (GAAS), China and the Islamia University of Bahawalpur (IUB), Pakistan held online today.

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Gansu Academy of Agricultural Sciences (GAAS), China and the Islamia University of Bahawalpur (IUB), Pakistan sign an MoU to cooperate on modern agricultural technology transfer and talent exchange and training. [Photo provided by Ali Raza]

Sharing similarities in climate, crop types and environment, based on the MoU, the Chinese agricultural technologies of efficient use of water and fertilizer with drip irrigation under mulch, farmland water utilization and regulation with plastic-film mulching on dryland, green and high-yield planting of potatoes in semi-arid areas, breeding and quality control of virus-free seed potato, storage and cold chain logistics of fruit and vegetable, fruit germplasm resources in cold and arid regions, solar greenhouse and related vegetable culture, forage sorghum cultivation and feeding, high-yield cultivation of melon in semi-arid areas, breeding and release of crop new cultivars of wheat, potato, rape, flakes, minor, etc. in cold and arid regions, etc. will be transferred from GAAS to IUB in the near future, which are urgently needed by Pakistan at the current stage and are expected to give new impetus to Pakistan’s agricultural progress.

Most notably, both parties agree to establish China-Pakistan Crop Research Center, focusing on high yield and high quality composite crops, to cooperate in research, demonstration, and promotion of variety selection, optimization of cultivation technology, plant protection, and agricultural mechanization.

“GAAS scientific research achievements’ overseas development will support countries along the Belt and Road route like Pakistan to upgrade its agricultural sector. We’re looking forward to GAAS-IUB contribution to sustainable and high quality agricultural development of the two countries.” Dr. Ma Zhongming, GAAS President remarked.

“The collaboration between GAAS and IUB will benefit people of both countries. We believe the cooperation will further strengthen Pak-Sino friendship and exchanges between the two peoples, and promote sustainable development for our next generations,” Engr. Prof. Dr. Athar Mahboob, Vice Chancellor, IUB said.
 
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Rice exports: new heights

BR
21 Jun, 2022

Pakistan’s rice exports have made a fresh record this fiscal, reaching 4.5 million metric tons (MMT) during 11M-FY22. As per PBS, rice exports for fiscal year to date are up 33 percent over same period last year, despite a weak performance during May-22. With one more month to go, will exporters be able to cross the psychological barrier of 5MMT?

The strong performance during the ongoing fiscal has primarily come on the back of coarse rice exports, which are anticipated to cross 4MMT by June end (up 35 percent over the previous year).

Pakistan’s previous coarse rice record stands at 3.75MMT for FY16, against export earnings of a little over $1.4 billion. Coarse rice earnings during 11M have already added $1.65 billion to export kitty, with forecast to safely reach $1.8 billion by year end.

Meanwhile, basmati exports during the year have failed to inspire even though exported volume during 11MFY22 is also up 23 percent over the previous year. Full year volume forecast of 0.75MMT will hardly feature among top-10 basmati export years, which averaged at 0.95MMT between FY03 – FY12. Similarly, basmati export earnings may remain shy of $0.7 billion by fiscal close.

If the trend continues as projected, basmati volume and value will be less than levels touched as recent as in FY20, the pandemic year.

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This isdespite a hundred dollar per ton rise in basmati prices in the export market during May-22, which have also sent local prices in a frenzy. Super basmati (new) prices in local wholesale markets have risen by at least 20 percent in the last 45 days alone. It is unclear whether export demand has strengthened during June-22, or local prices have risen in response to news of lower basmati cultivation due to canal water shortage.

Either way, full year export earnings (for all varieties) will most certainly manage to bag $2.5 billion, of which as much as three-fourths supplied by coarse rice exports (coarse rice share in export volume stands at 85 percent).

Increasingly, Pakistan is establishing itself as a small but significant player in coarse rice exports (including hybrid rice), with its share in basmati export market diminishing to a little under 15 percent. On the other hand, local demand for basmati remains unsatiated, as over 80 percent of local production now goes towards domestic consumption. With Pakistan fast running out of irrigated acres to cultivate rice – while basmati prices in international market are tracking up along with a freefall in rupee value - a basmati price spiral in local market may soon become a distinct possibility.
 
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major crops noted significant rebound during FY22. At 4.4 percent, the growth rate is highest in 17 years, and one of the few feathers in PTI’s cap. However, farming sector’s performance during the ongoing fiscal hardly masks its abysmal show over the last decade. In fact, the last 10 years (2013 – 22) could very well be dubbed the lost decade of Pakistan’s farming sector; at least the first since the 1960s.

Remarkably, the credit for this abysmal show goes equally to both PML-N and PTI, both of which draw electoral support from country’s farming heartland: Punjab. Out of five major crops, the three most important: wheat, rice and cotton – recorded their slowest decade growth rate in productivity. The productivity improvements have been so embarrassing that the share of these three crops in the Important Crops Index fell from 80 percent under old base to a little under 65 percent under the rebased GDP.

The two crops that did perform well and marked major leaps in productivity – maize and sugarcane – now occupy an oversized 35.2 percent share in the Index of Important Crops – in turn helping to pull sectoral GDP growth rate out of the woods during FY22 (under the new base). Farming sector’s flagship crops – wheat, cotton, and rice –now represent a major drag on agricultural productivity. Consider that out of the gross 17.5 million hectares cultivated under 5 major crops, 82 percent of land is utilized by the former three, while maize and sugarcane occupy just 2.9 million hectares. Sadly, those hardly aware of farming sector’s dynamics regularly vilify the latter two crops for replacing the traditional acres that formerly cultivated cotton.

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Yet, even maize – which is now the biggest star of Pakistan’s farming sector and growers’ new darling crop – saw decade average productivity growth rate slowdown from 8 percent per annum during 2003 – 2012 to 6.5 per annum during 2013 – 2022. For all its bad rap, sugarcane remains the only crop which recorded highest decade average growth rate since 60s, rising to 2.2 percent per annum from 1.3 percent during the preceding decade – marking its supremacy in the era of climate change.

Before those in the corridors of power make promotion of pulses and oilseeds the focus of policymaking for the next decade, it remains imperative that they first focus on improving productivity in traditional crops. Pakistan’s largest crop wheat - which occupies 9 million hectares every year – saw its slowest decade average growth rate of just 0.7 percent p.a. during the last 10 years. The country may very well be able to switch from cotton to cane or maize. But future of food security in a 230 million headstrong nation will remain perpetually insecure unless it prioritizes investment in cereal/grain productivity on war footing basis.
 
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Pak-China can promote tea on commercial scale through joint ventures: Experts​

By Fatima Javed
Jun 24, 2022

ISLAMABAD, June 24 (Gwadar Pro) – According to experts, potential suitable sites and land for tea cultivation are located alongside China-Pakistan Economic Corridor (CPEC). Therefore, China has a big role to play in promoting tea on a commercial scale through joint ventures and technical and financial support.

China from the beginning has played a crucial role in tea promotion in Pakistan. With the technical and financial assistance of China, at Shinkiari in Mansehra, Pakistan Agricultural Research Council (PARC) established a tea estate of over 50 acres along with green and black tea processing units, but it is yet to be adopted by the private sector on a sustainable basis.
Tea plantation and processing have already proved successful in northern Pakistan. However, its commercialization under the market mechanism needs decision-makers’ attention.

The federal government has engaged private sector companies for experimentation and commercialization of tea. However, the pace and quantum of commercialization have been very slow.

According to the online data platform Observatory of Economic Complexity, Pakistan imported $646 million worth of tea in the fiscal year 2019-20, largely from Kenya.

This has listed Pakistan as the largest importer of the commodity in the world. In the 10 months of this fiscal year, tea imports have jumped by 9% to $532.4 million, compared with $580.5 million in the entire FY 2020-2021.

In view of the growing population and increasing consumption of tea in Pakistan, the government is working out a plan to commercialize tea cultivation for curtailing the import bill to this effect.

Talking to media, Federal Minister for Planning and Development Ahsan Iqbal said on Thursday that a huge chunk of foreign exchange is spent every year on importing tea in Pakistan. If local tea production is promoted, the country's import bill could be significantly reduced.

The minister visited National Tea & High Value Crops Research Institute (NTHRI) at Shinkiari, Abbottabad and had a briefing on tea cultivation, its processing and commercialization in Pakistan.

He said that Pakistan could not attract foreign direct investment in the tea industry despite huge domestic demand. Neither it is advanced in research & development on tea production.

Earlier in his tweet the planning minister mentioned that Pakistan is the largest importer of tea in the world, racking up an import bill of whopping $589.8 million in 2020 alone.

Tea has emerged as a major import commodity and is draining huge foreign exchange every year. Local tea production is fast becoming a matter of urgency as domestic consumption of tea will increase by another 10% in the next five years.
 
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Gansu to transfer modern dryland farming techs to Pakistan​

By Wang Xiaotong | China Economic Net
Jun 22, 2022

LANZHOU, June 22 (China Economic Net) - Gansu is to transfer modern Chinese agricultural science and technology particularly applicable to arid and semi-arid regions to Pakistan, revealed at the memorandum of understanding (MoU) signing ceremony between Gansu Academy of Agricultural Sciences (GAAS), China and the Islamia University of Bahawalpur (IUB), Pakistan held online today.

Gansu Academy of Agricultural Sciences (GAAS), China and the Islamia University of Bahawalpur (IUB), Pakistan sign an MoU to cooperate on modern agricultural technology transfer and talent exchange and training. [Photo provided by Ali Raza]

Sharing similarities in climate, crop types and environment, based on the MoU, the Chinese agricultural technologies of efficient use of water and fertilizer with drip irrigation under mulch, farmland water utilization and regulation with plastic-film mulching on dryland, green and high-yield planting of potatoes in semi-arid areas, breeding and quality control of virus-free seed potato, storage and cold chain logistics of fruit and vegetable, fruit germplasm resources in cold and arid regions, solar greenhouse and related vegetable culture, forage sorghum cultivation and feeding, high-yield cultivation of melon in semi-arid areas, breeding and release of crop new cultivars of wheat, potato, rape, flakes, minor, etc. in cold and arid regions, etc. will be transferred from GAAS to IUB in the near future, which are urgently needed by Pakistan at the current stage and are expected to give new impetus to Pakistan’s agricultural progress.

Most notably, both parties agree to establish China-Pakistan Crop Research Center, focusing on high yield and high quality composite crops, to cooperate in research, demonstration, and promotion of variety selection, optimization of cultivation technology, plant protection, and agricultural mechanization.

“GAAS scientific research achievements’ overseas development will support countries along the Belt and Road route like Pakistan to upgrade its agricultural sector. We’re looking forward to GAAS-IUB contribution to sustainable and high quality agricultural development of the two countries.” Dr. Ma Zhongming, GAAS President remarked.

“The collaboration between GAAS and IUB will benefit people of both countries. We believe the cooperation will further strengthen Pak-Sino friendship and exchanges between the two peoples, and promote sustainable development for our next generations,” Engr. Prof. Dr. Athar Mahboob, Vice Chancellor, IUB said.
 
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Pakistan’s dried fruits have a huge market in China​

By Mariam Raheem

SHANGHAI, May 17 (Gwadar Pro) - To tap the numerous potential of Pakistan’s dried fruits export, the Consulate General of Pakistan in Shanghai in collaboration with the Trade Development Authority of Pakistan, held a webinar today on the export of dried fruits and nuts from Pakistan to China.

On the occasion, Mr. Hussain Haider, Consul General of Pakistan in Shanghai, highlighted that exports of nuts and dried fruits from Pakistan to China reached $65 million in 2021, a surge from $8 million in 2020, which shows great potential for Pakistan’s dried fruits export to China. “Pakistan has a strong agricultural foundation and quality dried fruits. Under the second phase of China-Pakistan Free Trade Agreement, Pakistan exports dried fruits to China with zero tariffs, which is of great benefit to Pakistan.”

The CG further mentioned that “Chinese snack food is a rapidly expanding market and snacks with high nutrition are becoming more popular. Preference for small packages is growing and online purchase is becoming the prevailing mode of purchase. By catering to the needs of the Chinese market, Pakistani dried fruits companies can seize business opportunities.”

More than 20 related companies from China and Pakistan attended the webinar. Pakistani enterprises propose to simplify road transport procedures, increase transport channels and reduce transportation costs.

The ongoing epidemic in Shanghai has made people pay more and more attention to food and realize the importance of nutritious food that can improve immunity and can be preserved for a long time. Chinese trade, logistics, and e-commerce enterprises present believe that Pakistan’s export of dried fruits to China has a bright future, and they are willing to display quality Pakistani dried fruit products through exhibitions and other channels to expand its popularity in China.

Pakistan exported oilseeds, nuts, and kernels worth $185.2 million during the first ten months (July-April) of the current fiscal year against the exports of $84.6 million during the same period of the last fiscal year, showing an increase of 118.93 percent, according to the Pakistan Bureau of Statistics (PBS). In terms of quantity, the exports of oilseeds, nuts, and kernels also increased by 76.06 percent, going up from 77,415 MT to 136,294 MT, according to the data.

China has become Pakistan’s largest trading partner for years. In the first four months of 2022, China imported a total of 2.819 million tons of dried and fresh melons and nuts, an increase of 12.9 percent over the same period last year..
 
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Competing crops: productivity versus profitability?

BR Research
01 Jul, 2022

Kharif crops sowing season for marketing year 2022-23 is now in full swing, with higher target output fixed for all major cash crops. Raising output across crops that otherwise compete for farmer’s interest means consistent improvement in productivity. Unfortunately, higher prices for nearly all major inputs – from urea and phosphate to diesel and pesticides – means maintaining growth in productivity may pose a significant challenge in the ongoing season.

Thus, crops that will succeed to raise output will most likely be those that wrangle a share in acreage from substitutes. Naturally, like all profit-maximizing enterprises, farmers must also base their crop selection on the principles of return on investment; selecting crops that hit the optimal balance between required initial capital, risk aversion to adverse conditions such as extreme weather, and market pricing.

Cursory analysis indicates that cotton crop is finally back in business this year. According to average cost of production data published by Punjab government, cotton crop may offer return of upwards 50 percent in the ongoing season if prices maintain their recent trajectory. Globally, cotton prices have shot up and are at their highest levels since H1-CY11, with forecasts indicating that world prices may not climb down any time soon.

In fact, even if cotton prices were to fall by 20 percent between now and harvest period, cotton crop may offer higher per unit profitability compared to all other competing crops including maize, basmati rice, and sugarcane. Yet, initial surveys suggest the crop is struggling to make significant inroads, with best case forecast of no more than 10 percent rise in acreage on national basis.

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Why? Because farmer profitability is determined not by profit per unit of output but per unit of land employed. Although cotton prices have escalated significantly compared to cost (when measured in weight), land is available in finite quantum. And despite significantly higher per unit prices, the difference in yield per unit of land is so stark between cotton and competing crops that farmers may choose to prefer substitutes due to their significantly higher yields. It must be emphasized that according to Gov Punjab, average cost of production at Rs80,000 per acre is similar for most competing crops, yet cotton is still losing out by a wide margin.

Consider that over the last ten years, average yield of cotton crop in Punjab province has declined by nearly 10 percent. Compare this to maize crop – whose per unit production cost is fast catching up with market prices – but managed to maintain its share due to 45 percent rise in average yield. Similarly, average sugarcane yield in the province rose by 24 percent over the last decade, partly explaining why the two crops have managed to give cotton a run for its money during that period.

Of course, productivity improvements alone cannot explain the full picture. Consider that while yield enhancement of basmati rice has been very stunted, significant profit margins helped retain farmers’ interest.

Pricing alone it seems cannot be sufficient in converting farmers over. While it is true that the margin offered by cotton crop may be lucrative enough to attract some growers, until the productivity challenge is resolved, restoring the past glory of cotton crop will remain a distant dream. Meanwhile, farmers who have managed to turn to substitute crops have earned handsome profits in recent years. That should bring policymakers some solace.
 
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Pakistan's sesame seed export to China grew by 47 percent on a year-on-year basis in the first five months of the current year 2022, reaching $50.32 million.


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Looming food insecurity poses threat in South Asia including Pakistan​

APP
Jul 12, 2022

Federation of Pakistan Chamber of Commerce and Industry’s United Business Group (UBG) Chairman Shahzad Ali Malik Saturday said that the looming food insecurity hovering in and around the region has posed an impending threat to all under developed countries especially South Asia including Pakistan.

Speaking at a penal discussion on “Ramification of food Insecurity in Pakistan”; held here under the aegis of the UBG, Shahzad Ali Malik, Sitar-I-Imtiaz former President Lahore Chamber of Commerce and Industry quoting the world food programme, said recently Pakistan’s double digit food price inflation, along with dwindling income, has left more Pakistanis food insecure.

He said a sizeable number of Pakistanis are food insecure of which 18 percent confronted with acute food insecurity. He said 20 percent of population in Pakistan is undernourished and 44 percent children under five year are stunted.

He said in recent years, Pakistan has produced more food that its population consumes and has been a major producer of wheat and rice.

However, the poor segment of the society and most vulnerable people in country can not afford a sufficient and nutritious diet despite the overall growth in food production.

Shahzad Ali Malik said primarily this is due to limited economic access to the poorest especially women lacking an adequate and diverse diet.
 
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